Graham really didn’t care about the kind of business he was buying, in his world every business had a price at which it was a bargain.
Graham was focused on finding companies trading at less than half of what they held in cash. He called it “buying a dollar for 50 cents.”
Graham had other standards as well such as never paying more than 10 times company’s earnings and selling the stock if it was up 50%. if it didn’t go up within two years, he would sell it anyway.
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Because these business economics working in their favor, there was zero chance of them ever going into bankruptcy.
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Once you have your capital, invest 50% of it into bonds or an index fund (depending on market conditions) while the other 50% to be invested on individual stocks.
However, when investing on individual stocks make sure of the ff:
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